In the current business scenario, layoffs have become commonplace due to the COVID-19 pandemic’s economic impact, resulting in financial pressures, declining market demand, and decreased funding. Companies are struggling to cope with these unprecedented challenges, and the latest victim to make the headlines is BookMyShow.
BookMyShow, India’s leading online ticket booking platform, was established in 1999 and has transformed the country’s entertainment sector. The platform has over 30 million users and is available in over 650 towns and cities.
Funding and Investors:
Over the years, BookMyShow has successfully raised over $224 million in funding from prominent investors such as Stripes Group, SAIF Partners, and Accel Partners.
Since its inception, BookMyShow has witnessed a significant increase in revenue, growing at a Compound Annual Growth Rate (CAGR) of 22%. However, like most companies, BookMyShow’s performance has been affected by the ongoing pandemic, which has significantly reduced consumers’ discretionary spending.
Reasons for Layoffs:
On May 28th, 2020, BookMyShow made headlines for laying off 270 employees, which represents 18% of its total workforce worldwide. The company cited the COVID-19 pandemic’s unprecedented and unpredictable time’s impact on the entertainment industry as the key reason for the layoffs.
Number of Employees Laid Off:
The layoffs at BookMyShow affected 270 employees, a decision that was made with a heavy heart and regret. The company tried exploring different measures to accommodate its existing workforce, such as reducing working hours, pay cuts, and furloughs, but these steps were no longer sustainable. Therefore, the decision on layoffs was the next best alternative.
Following the announcement of the layoffs, BookMyShow shared a statement expressing its regret and deep concern for the employees impacted by this unfortunate situation. “We are going through an unprecedented situation due to the global pandemic, which has led to significant changes in our operations and the entertainment industry as a whole,” the statement read. BookMyShow also expressed its gratitude and commitment to ensure adequate support is provided to its employees who had been impacted by the layoffs.
In conclusion, even with its robust history, financial backing, and reputation in the industry, BookMyShow’s business was significantly impacted by the pandemic. Unfortunately, the company could not avoid laying off workers, leading to the loss of over 200 people’s jobs. This scenario is not just limited to India but is a problem around the world, and companies are finding it tough to cut down on employees during these trying times. While we may not be able to predict the future and what it holds, we can only hope that companies worldwide consider alternative measures before making similar decisions that may lead to more layoffs.